An investment centre has reported net operating profits after tax of sh.24 million. Taxation is paid at the rate of 25 per cent of the operating profit. The company has a risk adjusted weighted average cost of capital of 12 per cent per annum and is paying interest at 9 per cent per annum on a substantial long term loan. The investment centre's non-current asset value is sh.11 million and the net current assets have a value of sh.22 million.

Q: The Anderson Corporation (an all-equity-financed firm) has a sales level of $300,000 with a 12…

A: Rate of return is the annual income earned in proportion to original investment.

Q: What is the EVA for Smith Falls? A)$305,000 B)$338,563 C)$220,188 D)$275,500 E)$255,500

A: EVA = NOPAT- WACC ( Total Assets - Current Liabilities ) WACC = ( Weight of Equity x Cost of Equity…

Q: Oblib Inc. has a debt-equity ratio of 2, and a weighted average flotation cost of 4%. What is the…

A: Amount to be raised=$1.5 millionWeighted average flotation cost=4%

Q: Sainsbury is financed by both debt and equity. Using the  following information and calculate the…

A: WACC means weighted average cost of finance or to raise the funds. Company has to pay an additional…

Q: 1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by…

A: The Internal Growth Rate (IGR) represents the maximum growth rate a company can achieve without…

Q: Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of…

A: Given: Particulars Amount Rate Debt $700,000 5.20% Equity $1,000,000 16.00%

Q: Waldorf Company has two sources of funds: long-term debt with a market and book value of $5,300,000…

A: NOPAT :— It stands for net operating profit after tax. It is calculated by deducting tax expense…

Q: Haperville bank has total assets of $100 million and equity capital of $3 million. Its income…

A: New balance of equity capital = Opening equity capital + Current year addition to equity capital

Q: 1. (a) An organization has $2 million in assets and an earnings beforeinterest and taxes (EBIT)…

A: see the explanation belowExplanation:(a) No Debt FinancingProfit before tax (EBIT) =…

Q: Accounting Question

A:

Q: One third of company X's asset purchases were financed by taking out a loan from the bank. The…

A: Leverage ratio= Total assets ÷shareholders equity

Q: o Coal Company has estimated the costs of debt and equity capital (with bankruptcy and agency costs)…

A: Weighted average cost of capital of the company is the weighted cost of debt and weighted cost of…

Q: ABLE Bank has a Return on Equity (ROE) of 18% and a Return on Assets (ROA) of 5%.  ABC Bank has a…

A: Return on Equity (ROE) and Return on Assets (ROA) are important financial metrics that help assess a…

Q: There are two company A Ltd. and B Ltd. having same EBIT of Rs. 20,000. B Ltd.is a levered company…

A: Arbitrage process is the process of purchasing securities at a lower price in a market and selling…

Q: (a) An MNC has total assets of $150 million and debt of $50 million. firm's before-tax cost of debt…

A: Weighted average cost of capital is the weighted cost of debt and weighted cost of equity and is…

Q: Oceania Bank has financial assets of $730 and equity of $328.5. If the duration of assets is 6.52…

A: Leverage-adjusted duration gap is a financial measure used to assess the sensitivity of financial…

Q: Which of the following calculations is correct if sales are $25,000, operating profit after tax is…

A: Profitability analysis is a financial practice that measures a firm's efficiency in generating…

Q: Peterson Packaging Corp. has $9 billion in total assets. The company's basic earning power (BEP)…

A: BEP ratio =9% Total assets =$9 billion  Time earned ratio =3

Q: Planet Express has liabilities of $400 and assets of $1000. The average YTM on its debt is 10% and…

A: FORMULA FOR WACC: WACC=WP×KP+WD×KD×1-TAX WHERE, WD=weight of debtwp=weight of preferred sharekd=cost…

Q: PT XYZ is a garment company that produces batik and other traditional clothing. The company's…

A: Weighted average cost of capital shows a company average cost of capital from all the sources that…

Q: SABC Limited has the following information: The market values of the different components are: Debt…

A: Value of Debt = d = R 200 millionValue of Equity = e = R 500 millionCost of Debt after tax = cd =…

Q: Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million.…

A: Debt service revenue ratio = Debt service / revenue

Q: ou are given the financial information for the Unic Company: Earnings Before Interest and Tax…

A: Company Equity is the difference between the assets and liabilities of the company . We also…

Q: Company A is financed with 90 percent debt, whereas Company B, which has the same amount of total…

A: Return on assets is a ratio that helps in determining the amount of profit or earnings earned by the…

Q: Calculate the FCF for a firm if it has operating cash flows of 500, CAPEX of 320, and a change in…

A: Given: Operating cash flow = 500CAPEX = 320Change in NWC = -18The free cash flow (FCF) can be…

Q: give me answer

A: Step 1:Determine the formula for the weighted average cost of capital (WACC):WACC = (E/V) * Re +…

Q: Calculate the FCF for a firm if it has operating cash flows of 800, CAPEX of 280, and a change in…

A: Free cash flow is a company's cash flow of money after deducting all operational costs, capital…